King Pharmaceuticals says second-quarter revenue up 8% over last year

By E. Janene Geiss

Philadelphia, Aug. 9 - King Pharmaceuticals, Inc. said Wednesday that total revenues increased 8% to $500 million during the second quarter compared to $463 million in the second quarter of 2005.

Including special items, net earnings increased to $111 million and diluted earnings per share increased to $0.46 during the second quarter ended June 30, compared with net income of $20 million and diluted earnings per share of $0.08 in the same period last year, according to a company news release.

Excluding special items, net earnings increased to $112 million and diluted earnings per share increased to $0.46 compared with net earnings of $107 million and diluted earnings per share of $0.44 in the second quarter of 2005.

"We are very pleased with the success of our activities during the second quarter of 2006, which enabled us to deliver positive financial results while investing incrementally in research and development and commercial operations," Brian A. Markison, president and chief executive officer of King, said in the release.

For the remainder of 2006, the company said it will continue to focus on maximizing value of its currently marketed branded pharmaceutical products and advancing the development of new products.

Activities during the company's second quarter included restructuring of its co-promotion agreement covering the branded ACE inhibitor, Altace (ramipril). That restructuring, officials said, allowed the commercial operations group to manage and implement a marketing strategy designed to reinvigorate demand for Altace.

The company also said it is expanding its commercial capability with the addition of a cardiovascular/metabolics specialty sales force, providing greater strength to the promotion of Altace and Glumetza, the company's recently added metformin hydrochloride extended-release tablets.

Net revenue from branded pharmaceuticals totaled $419 million for the second quarter of 2006, a 5% increase from $400 million during the second quarter of 2005. This increase was primarily due to price increases taken in the second half of 2005.

Altace net sales totaled $154 million during the second quarter of 2006, an increase of 7% from $144 million during the second quarter of 2005.

Net sales of Skelaxin (metaxalone) totaled $97 million, up 12% compared to $87 million during the same period last year.

Thrombin-JMI (thrombin, topical, bovine, USP) net sales totaled $62 million, a 17% increase from $53 million last year.

Net sales of Sonata (zaleplon) totaled $24 million during the second quarter, an increase of 24% compared to $19 million during last year's second quarter.

Levoxyl (levothyroxine sodium tablets, USP) net sales totaled $29 million, a drop of 30% from $41 million last year.

King said its Meridian Medical Technologies business contributed revenue totaling $54 million, an increase of 52% from $35 million during the same period last year.

As the company has previously disclosed, revenue from Meridian may fluctuate as buying patterns of government and commercial customers vary. Accordingly, the company said it expects Meridian revenue to be significantly lower in second half of 2006 compared to the first half of 2006.

As of June 30, the company said its cash and cash equivalents and investments in debt securities totaled about $803 million.

King is a Bristol, Tenn., pharmaceutical company.

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